Should You Add These Top Consumer Staples Stocks To Your April 2022 Watchlist?
As we tread through a volatile stock market, some investors may consider rotating into more defensive stocks. This is where consumer staples stocks enter the picture. Consumer staples, such as food items and household supplies, will always be in demand. Because of that, consumer staples stocks tend to offer investors more stability as compared to growth and tech stocks. Even now, when inflation is high, consumers will still need to purchase these everyday essentials. Hence, the sector often comes to mind for investors looking for a safe haven.
A prime example of a consumer staples stock is Walmart (NYSE: WMT). On Tuesday, the company announced the expansion of its Walmart Health centers. The company will be opening five new centers across North and Central Florida, making health care more accessible to the local community. Elsewhere, we have tobacco and cigarette producer Altria (NYSE: MO). Goldman Sachs (NYSE: GS) recently upgraded the company to a “buy”. Goldman says that, when compared to its competitors, Altria is in a better position thanks to its defensive, domestic-focused business. And on that note, watch out for these top consumer staples stocks in the stock market today.
Consumer Staples Stocks To Buy [Or Sell] Right Now
- Costco Wholesale Corporation (NASDAQ: COST)
- General Mills Inc. (NYSE: GIS)
- PepsiCo Inc. (NASDAQ: PEP)
- BJs Wholesale Club Holdings Inc. (NYSE: BJ)
- Dollar Tree Inc. (NASDAQ: DLTR)
Costco is a membership-only big-box retail store that many of us are likely familiar with. After all, it is the go-to store when consumers wish to buy items in bulk. Costco sells a variety of products ranging from dry food and sundries to consumer durables to fresh food. In fact, the average Costco warehouse is approximately 146,000 square feet. Over the past year, COST stock has risen by over 65%.
This week, the big-box retailer posted its March sales results. Jumping in, net sales came in at $21.61 billion, a year-over-year increase of 18.7% from $18.21 billion. Comparable sales for the five-week period rose 17% year-over-year. As for its e-commerce segment, sales rose by 8.9%. Seeing how Costco continues to bring in strong sales numbers, should you invest in COST stock?
Another top name to consider today is General Mills. Put simply, the company is a manufacturer and marketer of branded consumer foods sold through retail stores. Whether it is branded or unbranded food products, it is one of the major suppliers to the North American food service and commercial baking industries. General Mills, on March 23, reported its results for the third quarter of fiscal 2022.
For starters, the company brought in $4.5 billion in net sales, matching its results from a year ago. Although not an increase, its organic net sales were up by 4%. Alongside that, it brought in diluted earnings per share of $1.08, up by 13% from the prior year. The company also raised its guidance for the year. CEO Jeff Harmening shared, “We expect to drive strong growth in the fourth quarter, fueled by accelerating net price realization. With confidence in our plans and positive momentum on our business, we’re raising our guidance for fiscal 2022.” Given the positive sentiment, would you buy GIS stock?
Following that, we have PepsiCo. Most of us would be familiar with the global food company’s offerings. This ranges from its famous beverage lines such as Pepsi-Cola and Gatorade to food brands like Frito-Lay and Quaker. As a matter of fact, the company possesses 23 brands that have over $1 billion in sales. PepsiCo also estimates that its products are consumed over a billion times a day across more than 200 countries worldwide.
About two weeks ago, PepsiCo and Beyond Meat (NASDAQ: BYND) announced the debut of Beyond Meat Jerky. This marks the first product from the two companies’ joint-venture, Planet Partnership. Available in stores nationwide starting March, the plant-based jerky offers a full-flavored, on-the-go snack experience. On top of that, it is also Beyond Meat’s first shelf-stable product, allowing it to be distributed everywhere from grocery stores, gas stations, and pharmacies to name a few. With that being said, will you be watching PEP stock?
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BJ’s Wholesale Club
BJ’s Wholesale Club is a membership-only warehouse club chain that operates across the U.S. The company operates over 200 clubs and over 150 BJ’s gas locations in 17 states. It continues to deliver significant value to its members, consistently offering 25% or more savings compared to traditional supermarket competitors. As a matter of fact, over the past year, BJ stock has risen by nearly 50%.
Last week, DoorDash (NYSE: DASH) announced a partnership with BJs. Notably, The popular delivery app will now offer on-demand grocery delivery from 226 BJ’s locations across 17 states. Consumers will be able to purchase products from BJ directly on the DoorDash app. Not to mention, members can also link their BJ’s account to get member-only pricing. In addition to this, the partnership will also enable same-day delivery from BJs.com. As such, this will help BJ’s members receive their orders directly from their homes. Given this collaboration, would you consider buying BJ stock?
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Finally, we have Dollar Tree, a leading operator of discount variety stores. It has over 16,000 stores across North America and is supported by a coast-to-coast logistics network and more than 193,000 associates. The company is also one of the fastest-growing retailers in the U.S. and offers an assortment of merchandise for the whole family. This would range from household items to health and brand-name foods. Early last month, Dollar Tree reported its quarterly earnings. Notably, the company brought its net sales of $7.08 billion, up by 4.6% from $6.77 billion a year ago.
Additionally, diluted earnings per share were $2.01 for the quarter, beating consensus estimates of $1.79 per share. The company also provided its outlook for the first quarter of 2022. Namely, it expects sales to range between $6.63 billion and $6.78 billion, with a low single-digit increase in same-store sales. Besides that, earnings per share are forecasted to be between $1.95 and $2.10. All in all, with the steady quarterly performance, is DLTR stock a buy?